Deutsche Bank analysts have expressed concerns about the potential for an overheating US credit cycle following the election of President-elect Donald Trump.

They caution that stronger economic growth, rising inflation, and increasing interest rates could result in significant rate volatility, which may disrupt the current supportive credit environment and have a negative impact on investor returns.

The analysts, including Jim Reid and David Folkerts-Landau, highlight that the financial and geopolitical landscape has undergone a significant shift in the aftermath of Trump's victory and the Republican majority in Congress.

This change introduces a wider range of possible outcomes for financial markets, indicating that investors should prepare for increased uncertainty and volatility in the near future.